Aberdeen Asset Management Asia Limited’s acquisition of PT NISP Asset Management formally approved.
Aberdeen Asset Management Asia Limited (AAMAL) announces today the establishment of PT Aberdeen Asset Management as a fully licensed onshore fund manager
This announcement follows Indonesian Securities regulator Otoritas Jasa Keuangan (OJK)’s approval of AAMAL’s acquisition of 80% of the share capital of PT NISP Asset Management (NISPAM) from NISP Sekuritas in September, and the subsequent change of control at the beginning of this month. The Ministry of Justice and Rights vetted the name change on 1 December.
AAMAL’s move into Indonesia is in response to the broad pace of economic growth in Indonesia and the rising level of affluence. As savers become knowledgeable it believes they will become more willing to put money into risk assets.
The company also acknowledges that its familiarity with the owners and culture behind NISPAM made that a natural vehicle for expansion into the country.
Ten months after the initial announcement of a deal, there has been a seamless transition to the Aberdeen Group’s global operating platform according to Sigit Wiryadi who led NISPAM as president director and continues in his role following AAMAL’s acquisition.
Thus, PT Aberdeen Asset Management joins a global network that spans 26 countries with US$520bn under management.
Before the acquisition, NISPAM had 12 open-ended mutual funds and 8 protected mutual funds, among others, amounting to about US$300m in total. Once individual name changes are approved, AAMAL expects to rationalise the fund range.
The Aberdeen Group has been investing in Indonesia from offshore for many years. Its first investment dates from the late 80s. At present it has US$2.73bn invested in Indonesian equities and US$1.47bn in fixed income (at end October 2014) on behalf of clients globally, both retail and institutional. This includes the NYSE-listed Aberdeen Indonesia Fund, Inc., with assets of US$95m.
Speaking at the company’s brand new open-office headquarters at DEA Tower, Kuningan, Jakarta, Sigit Wiryadi, president director, expressed excitement at the prospects for the new firm:
“AAMAL was familiar with NISPAM for many years because of a longstanding investment in NISPAM’s parent bank. We have a similarly conservative mindset. Aberdeen has a very distinct long-term investment process, absolute self-belief when it comes to selecting securities and a true focus on clients. In a market that can be volatile, I’m sure this approach can help us stand out. We are determined to be standard bearers for transparency and openness towards our investee companies and our clients.”
Bharat Joshi, investment advisor, adds:
“The Aberdeen investment style is not to shoot the lights out but scrutinise every company carefully first. Once we invest we tend to stick with our holdings. We intend to approach the development of our business here in the same way. We aren’t expecting to raise assets quickly. We are comfortable taking our time, building our distributor and client base and earning our keep through good performance, education, service and brand development. That is how we aim to become a top ten manager.”
For further information, please contact:
Lydia Lee, Aberdeen Asset Management Asia Limited
Nicholas Hadow, Aberdeen Asset Management Asia Limited
Ezta Wahyudi, Edelman Indonesia
About Aberdeen Asset Management
Aberdeen is a global asset management group formed out of a management buy-out in Aberdeen, Scotland, in 1983. The Group is among the largest 100 companies listed on the London Stock Exchange and operates on the ground in 26 countries worldwide. It set up its first office in Asia in Singapore in 1992 and now has a presence in a further nine countries around the region.
The Group is defined by its pure focus on asset management, including equities, fixed income, property and multi-asset portfolios. All investment solutions are driven by its commitment to straightforward, transparent investment approaches that stress intensive, first-hand research and a long-term view.
As at 31 October 2014, Aberdeen managed US$520 billion on behalf of institutional and private investors. Of this amount we manage over US$100 billion from Asia.